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1 November 2026

Outsourcing government relations: what it costs and what you get

What drives the cost of engaging a government relations firm, common fee structures, what a good firm should deliver, and the lobbying rules (including the NSW success fee ban) that shape any engagement.

By Leigh Heaney, Watson Advisory

Many organisations reach a point where they need sustained engagement with government but do not have the people, time or networks to do it in-house. This guide explains what drives the cost of outsourcing government relations, how firms usually structure their fees, what you should expect to receive, and the lobbying rules that shape any engagement.

Who this guide is for

  • Chief executives and boards weighing up whether to engage a government relations (GR) firm
  • Corporate affairs and policy managers writing a brief or comparing proposals
  • Project developers, investors and industry associations with a specific decision, approval or funding round coming up
  • International companies entering the Australian market

What outsourced government relations covers

Government relations is the work of understanding how government decisions are made and making sure decision-makers have accurate, timely information about your organisation, your project or your industry. An outsourced GR adviser typically provides some or all of the following:

  • Political and policy monitoring: tracking parliament, budgets, consultations, inquiries and announcements relevant to you, and telling you what they mean.
  • Strategy: mapping the decision, who makes it and who influences it, and setting out a plan with clear objectives and timing.
  • Advocacy material: briefing notes, submissions, a short “ask” document and evidence that speaks to government priorities.
  • Stakeholder engagement: arranging and preparing for meetings with ministers, advisers, departments, agencies, opposition members and crossbenchers. (Watson Advisory can help you prepare for meetings with decision makers: admin@watsonadvisory.com.au)
  • Program and funding navigation: helping you understand government programs, funding bodies and procurement processes and position for them.
  • Issues and media support: advice when a government issue becomes public, coordinated with your communications team.

A firm that contacts government on your behalf is generally a third-party lobbyist under the federal Lobbying Code of Conduct and NSW law, so it must be registered and must follow those rules. Strategy, monitoring and drafting that you then use yourself are not “lobbying” in that sense, but most engagements include both.

When outsourcing makes sense

  • A defined decision is coming: a planning or environmental approval, a funding round, a budget bid, a legislative change or a procurement.
  • You need coverage you cannot build quickly: several jurisdictions, both sides of politics, or a portfolio you have not dealt with before.
  • You have an in-house team but need surge capacity or senior advice for a particular issue.
  • You are new to Australia and need to understand federal and state responsibilities before you engage.

Outsourcing makes less sense if your need is occasional and simple, such as a single consultation submission your team can write, or if what you need is a lawyer, planner or technical consultant rather than political and policy advice.

What drives the cost

There is no official schedule of fees for government relations, and fees vary widely across the market. Rather than quote numbers, here are the factors that move the price, so you can compare proposals on a like-for-like basis.

  • Scope. Monitoring and advice costs less than an active campaign with meetings, materials and coalition work. Be specific about deliverables.
  • Seniority and hands-on time. Ask who will actually do the work. Senior advisers cost more per hour but may need fewer hours.
  • Jurisdictions. Each extra government (federal, NSW, other states, local) adds monitoring, relationships and registration obligations. Federal and state lobbyist registers are separate.
  • Timeframe and intensity. A compressed timeframe, such as a budget cycle or a closing funding round, concentrates effort and cost.
  • Complexity and contest. Issues with organised opposition, competing proponents or cross-portfolio decisions need more work than a straightforward information campaign.
  • Sector expertise. Specialist knowledge (for example, energy market rules or funding programs) can save you paying for the firm to learn on your time.
  • Additional services. Media, research, polling, events and travel are often quoted separately.

Common fee structures

  • Monthly retainer: ongoing monitoring, advice and engagement for a set fee, usually with an agreed scope and minimum term. Best for continuing needs.
  • Project fee: a fixed price for defined work, such as a strategy, a submission, or a campaign around a single decision.
  • Hourly or daily rates: for ad hoc advice. Useful when the need is unpredictable, but harder to budget.
  • Hybrid: a smaller retainer plus project fees for defined pieces of work.

Success fees: banned in NSW

In NSW it is an offence to give, receive or agree to give or receive a fee that is contingent on the outcome of lobbying a NSW government official. The offence applies to the client as well as the lobbyist. The federal Lobbying Code of Conduct does not contain an equivalent express ban, but it does prohibit registered lobbyists from making misleading, exaggerated or extravagant claims about their access to government. A firm that offers to work “for a cut of the grant” or a bonus tied to a ministerial decision is a warning sign. Pay for the work, not the outcome.

What a good government relations firm delivers

  • Honest advice, including “not yet” or “not this way”. The value is often in what not to do.
  • A written plan with objectives, target decision-makers, key messages, milestones and how success will be judged.
  • Regular, useful reporting: what happened, what it means, and what you need to decide.
  • Material that stands on its own: accurate, concise and framed around public-interest outcomes, not just your commercial interest.
  • Compliance done properly: registered before contact, clients listed, disclosures made at first contact and registrations kept current.
  • Capability transfer: your own people should understand government better at the end of the engagement.

What you should not expect is a guaranteed result. Ministers and officials decide on the merits and on government priorities. Under the federal Code, registered lobbyists must not misrepresent the nature or extent of their access, and in NSW third-party lobbyists must not make exaggerated or misleading claims to clients about their access.

Step by step: engaging a GR firm

  1. Define the objective. Write down the decision you want influenced, by whom and by when. If you cannot do this, start with a scoping or strategy project.
  2. Write a short brief. Include background, jurisdictions, timing, deliverables, budget range and who internally will be the contact.
  3. Shortlist and check registers. Confirm firms and their individual lobbyists are on the federal Register of Lobbyists and, for NSW work, the NSW Lobbyists Register. Check the NSW Lobbyists Watchlist.
  4. Ask about conflicts. Firms represent multiple clients. Ask how they identify and manage conflicts, and whether they act for competitors on the same issue.
  5. Compare proposals on substance. Look at the proposed approach, the named team, hours or effort, deliverables and reporting, not just the headline fee.
  6. Agree compliant terms. Set out the scope, fee structure (no success fees for NSW lobbying), term, termination, confidentiality and who approves materials before they go to government.
  7. Allow time for registration. Federally, your organisation must be listed as a client before the firm contacts Australian Government representatives. In NSW, the firm must list its clients and update the Register within 10 business days of a change.
  8. Check foreign influence obligations if you are, or act for, a foreign principal. Lobbying for a foreign principal can trigger registration under the federal Foreign Influence Transparency Scheme, and NSW requires disclosure of foreign principal clients.
  9. Review regularly. Hold a quarterly review against the plan and adjust scope as the issue changes.

Timelines

Plan for three phases. Selection and contracting typically take a few weeks. Onboarding, including listing your organisation on the federal Register (the Attorney-General’s Department generally processes applications within 5 working days of receiving all documents), comes next. Results then depend on the government’s own timetable: budget cycles, parliamentary sitting weeks, consultation periods and funding rounds. Most influence campaigns run for months, not weeks, so start before the decision point, not after it. (We can help you plan engagement around the government’s timetable: admin@watsonadvisory.com.au)

Transparency: what becomes public

Engaging a lobbyist is a public act. The federal Register lists each lobbyist’s clients, and so does the NSW Register, which keeps details for at least two years after a lobbyist stops being registered. NSW ministers publish quarterly summaries of their meetings with stakeholders, including any registered lobbyists present and the client they represent. When your adviser first contacts an official, they must disclose that they are a lobbyist, who you are and what the matter is. Plan your messaging on the assumption that the relationship will be known.

Common mistakes

  • Buying access instead of advice. Relationships matter, but a good case, well timed, matters more.
  • A vague scope. “Raise our profile” is hard to deliver and impossible to measure.
  • Engaging too late. Once a decision is drafted or announced, it is far harder to change.
  • Outsourcing the relationship entirely. Ministers and officials want to hear from the people running the business or project. Your adviser should open doors and prepare you, not replace you. (We can help your own people get ready to meet ministers and officials: admin@watsonadvisory.com.au)
  • Using an unregistered consultant to lobby for you. Unregistered third-party lobbying breaches the federal Code and NSW rules, federal officials must not knowingly take part in it, and it reflects on you.
  • Agreeing an outcome-based fee for NSW work.

FAQ

How much does a government relations firm cost?

It depends on scope, seniority, jurisdictions and timeframe. Ask for a fee proposal against a clear brief, and compare the effort and named people behind each number.

Is a retainer or a project fee better?

A project fee suits a single decision with a clear end point. A retainer suits continuing exposure to government policy, such as operating in a regulated sector. Many clients start with a project and move to a retainer.

Can we pay a bonus if we win the grant or approval?

Not for lobbying NSW government officials: success fees are an offence for both parties. Federally there is no express ban in the Code, but outcome-based fees create integrity risks and we do not recommend them.

Will our name appear on a public register?

Yes, if the firm lobbies government on your behalf. Both the federal and NSW registers list clients. The federal Code has a narrow, temporary exception for listed-company clients where disclosure could cause speculation about an undisclosed market-sensitive transaction.

Do we still need in-house people?

You need at least one senior internal owner who can make decisions, provide information quickly and attend key meetings. The adviser works best as an extension of that person.

How Watson Advisory can help

Watson Advisory is a government relations and strategic advisory firm specialising in clean energy, industry and regulated sectors, and is on the NSW Lobbyist Register. We scope engagements around a clear objective, put senior people on the work and agree fees up front. Contact us at admin@watsonadvisory.com.au.

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About the author: Leigh Heaney is a Partner at Watson Advisory, specialising in government relations and public affairs. Leigh spent more than a decade as chief of staff to a senior federal frontbencher in both the House of Representatives and the Senate. Before joining Watson Advisory, Leigh was Government Relations director at Australia’s renewable energy peak body, working on the Capacity Investment Scheme and the production tax credits in the Future Made in Australia package.

This guide is general information only, current as at 22 October 2026. It is not legal, financial or tax advice. Program guidelines, eligibility and funding rounds change often, so check the official guidelines before applying, or contact Watson Advisory for advice on your circumstances.

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